Argentina reaches budget agreement with provincial governors

The Argentine government came to an agreement on Tuesday with the majority of governors of the country's provinces for a 2019 budget. Consensus over the budget is a important point for financial experts who consider it a signal of President Mauricio Macri's ability to apply the reforms promised to the International Monetary Fund earlier this year.

The budget proposal includes unpopular spending cuts aimed at reducing the primary deficit to zero next year. Argentine Economy Minister told reporters after the meeting that he expects the economy to contract this year but it will start growing again in 2019. Argentina is re-negotiating the terms of a $50 billion standby financing agreement struck with the IMF in June.